Correlation Between Jentech Precision and Unimicron Technology
Can any of the company-specific risk be diversified away by investing in both Jentech Precision and Unimicron Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Jentech Precision and Unimicron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jentech Precision Industrial and Unimicron Technology Corp, you can compare the effects of market volatilities on Jentech Precision and Unimicron Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jentech Precision with a short position of Unimicron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jentech Precision and Unimicron Technology.
Diversification Opportunities for Jentech Precision and Unimicron Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jentech and Unimicron is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jentech Precision Industrial and Unimicron Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unimicron Technology Corp and Jentech Precision is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jentech Precision Industrial are associated (or correlated) with Unimicron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unimicron Technology Corp has no effect on the direction of Jentech Precision i.e., Jentech Precision and Unimicron Technology go up and down completely randomly.
Pair Corralation between Jentech Precision and Unimicron Technology
Assuming the 90 days trading horizon Jentech Precision Industrial is expected to generate 1.52 times more return on investment than Unimicron Technology. However, Jentech Precision is 1.52 times more volatile than Unimicron Technology Corp. It trades about -0.09 of its potential returns per unit of risk. Unimicron Technology Corp is currently generating about -0.16 per unit of risk. If you would invest 146,000 in Jentech Precision Industrial on August 30, 2024 and sell it today you would lose (12,000) from holding Jentech Precision Industrial or give up 8.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jentech Precision Industrial vs. Unimicron Technology Corp
Performance |
| Timeline |
| Jentech Precision |
| Unimicron Technology Corp |
Jentech Precision and Unimicron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jentech Precision and Unimicron Technology
The main advantage of trading using opposite Jentech Precision and Unimicron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jentech Precision position performs unexpectedly, Unimicron Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Unimicron Technology will offset losses from the drop in Unimicron Technology's long position.| Jentech Precision vs. Lotes Co | Jentech Precision vs. Nan Ya Printed | Jentech Precision vs. Global Unichip Corp | Jentech Precision vs. Tong Hsing Electronic |
| Unimicron Technology vs. Nan Ya Printed | Unimicron Technology vs. Kinsus Interconnect Technology | Unimicron Technology vs. Novatek Microelectronics Corp | Unimicron Technology vs. LARGAN Precision Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |